Internal carbon pricing: A seven step guide

Apr 23:
A growing number of businesses around the world are turning to internal carbon pricing as a tool to manage climate-related risks and transition to a low-carbon economy. 8There are early signs that internal carbon pricing is also making inroads into forward-looking Indian businesses.8The website carries here a seven-point primer for developing and implementing an internal carbon-pricing scheme.8The primer is based on the experience of five Indian companies who have gone through this route.8The Indian government has signaled its intent to transition to a low carbon economy by committing under the Paris Agreement to have about 40 percent of non–fossil fuel-based electric power capacity in its energy mix by 2030. There is currently only a cess of Rs 400 levied per ton of coal purchased or imported by power producers. 8Additionally, programs such as clean energy and energy-efficiency standards (BEE 2012), renewable energy certificate schemes and renewables purchase obligations (MNRE 2016) also, in effect, impose a cost on carbon emissions.8It is not yet clear how Indian regulations will evolve as the nation works to reduce emissions. 8Nevertheless, the current regulatory landscape provides a favorable setting for increased corporate adoption of internal carbon pricing across sectors.Click on Reports for more